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2016 (12) TMI 1084 - GUJARAT HIGH COURTTDS on the amount of compensation and interest received pursuant to judgment and award of the Land Acquisition Reference - Held that:- The land of the petitioner was acquired for public purpose and he received compensation of ₹ 92,56,980/-, being additional amount of additional compensation and ₹ 3,06,39,391/- towards interest under the provisions of Land Acquisition Act, the assessee was not liable to pay any tax on the aforesaid amount received by him. Once on the aforesaid amounts, the petitioner was not liable to pay tax and/or the aforesaid sum of amount was not subject to tax, there was no question of deducting any tax at source, as has been done by the respondent no. 1. Identical question came to be considered in Movaliya Bhikhubhai Balabhai Versus Income Tax Officer - TDS - 1 - Surat & 1 [ 2016 (5) TMI 488 - GUJARAT HIGH COURT] held that the acquiring body was not justified in deducting the tax at source on the amount of compensation and the interest received under the provisions of the Land Acquisition Act. The impugned action of the respondent no. 1 in deducting and depositing a sum of ₹ 45,20,257/- towards TDS on the amount of compensation and interest received thereon pursuant to judgment and award of the Land Acquisition Reference is hereby quashed and set-aside. - Decided in favour of assessee
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